Why Shares of PG&E Are Falling Today
Shares of PG&E (NYSE: PCG) traded down 8% on Thursday at midday after a court-appointed monitor submitted a report that claims the utility has been careless in its efforts to manage trees that could pose wildfire threats. This poses a potential complication to the company's hopes for a smooth trip through bankruptcy protection.
PG&E filed for bankruptcy protection in late January as part of a plan to deal with upward of $30 billion in wildfire liabilities stemming from a blaze last fall. The so-called Camp Fire in northern California, which resulted in 85 deaths and massive property damage, was sparked by a PG&E power line.
The company has been attempting to reorganize and work out a plan involving California's legislature that would create a fund to help manage future liabilities. But the new report, issued by former deputy U.S. attorney general Mark Filip, found that PG&E has failed to identify and trim thousands of trees near power lines and has been deficient in record keeping and inspector training.
Source Fool.com
